Ripple Expert Slams XRP Supply Shock Theory, Cites Bitcoin’s Influence

The XRP supply shock theory has now become a hot topic in the crypto market, with many claiming that the availability of the Ripple token on exchanges is rapidly diminishing, significantly impacting its price. However, experts like Bill Morgan have raised their voice against this myth, arguing that it has no significant impact on the XRP price movements. Instead, Morgan believes that the prevailing trend of Bitcoin has more influence on the Ripple token.

XRP Supply Shock Doesn’t Drive Token Price

Amid growing discussions surrounding the XRP supply shock theory, Ripple advocate Bill Morgan weighed in, commenting on its little impact on the token price. He argues that the XRP supply shock has no “significant explanatory value” in analyzing the Ripple token price. According to the lawyer, the XRP price is more influenced by the price movements of Bitcoin. In his X post earlier today, Bill Morgan wrote,

Significantly, this pivotal comment comes amid the alleged XRP supply decline on exchanges, which has reached 1.5 billion tokens. This is partly due to the changing investor sentiment, where large holders are reportedly moving their tokens to centralized exchanges (CEXs), possibly for long-term custody.

This myth is also dismissed by the XRPL dUNL validator, VET, who says, “There is no XRP supply shock on exchanges.” VET argues that there is ample supply, as nearly 16 billion XRP is available on exchanges. The tweet also highlights the dynamic and elastic nature of XRP liquidity, adding,

XRP Supply Shock Myth Explained

Recently, many industry experts have stepped in, raising concerns about the XRP supply shock and its potential impact on the cryptocurrency’s price. Many view this as a direct influence of the growing demand for XRP ETFs. Reportedly, more than $1.25 billion in net assets have been accumulated since the XRP ETF launch in November 2025. As a result, the number of tokens available on exchanges for direct trading is declining.

According to a notable crypto voice, known on X as unknownDLT, XRP ETFs are increasingly absorbing the available Ripple token supply. As a massive 750 million tokens were absorbed in recent weeks, the analyst believes that the market will see a possible XRP supply shock by early 2025. 

Amid this decreasing supply and increasing demand, the stage is set for a significant XRP price surge, predict experts. As exchanges bleed and buyers are forced to accumulate the shrinking supply, the value of the token is likely to see a substantial hike. At the same time, reports also claim that the continued inflows into ETFs could reduce the surging selling pressure. This easing XRP selling pressure could also be a positive indicator for the XRP token price. 

However, as per Bill Morgan’s tweet, this connection is a possible myth. Morgan’s claims argue that the XRP price is not driven by the supply shock, but is instead more heavily influenced by the Bitcoin price actions.